Adriatic Metals plc (ASX: ADT) shares lifted during today's session following the company's update on its RAS Metals acquisition. By the market's close, the Adriatic Metals share price was up 8.26% to $2.36.
Let's take a closer look and see what the precious and base metals miner announced.
Completion of RAS Metals takeover
The Adriatic Metals share price was firmly in positive territory as investors digested the company's latest news.
According to its release, Adriatic Metals has completed the acquisition of the entire issued share capital of RAS Metals. This agreement was executed by Tethyan Resource Corp, a wholly-owned subsidiary of Adriatic Metals.
Under the deal, the remaining 90% of RAS Metals shares were picked up for a total cash consideration of 1.365 million euros. In addition, 166,000 ordinary shares from Adriatic Metals will be issued to the vendors of RAS Metals.
Adriatic Metals will also take up a deferred option that will see another 500,000 euros paid on 14 May 2022. A further 498,000 ordinary shares listed from the London Stock Exchange will also be handed to RAS Metals. This will be allotted in three separate but equal tranches over the current year and 2022.
The company stated that an application has been lodged to the Financial Conduct Authority and the London Stock Exchange for the shares to be admitted.
In addition to the announcement, Adriatic Metals went on to discuss its drilling program. It said that through its subsidiary, Tethyan, it has completed 11,000 meters of diamond core (DC) drilling on the Raska exploration licences. A further 25,000 meters of DC drilling is planned across the Raska Project this year.
What did management say?
Adriatic Managing Director and CEO Paul Cronin commented on the takeover:
From the work done following the completion of the Tethyan acquisition, exercising the option to acquire the remaining 90% of RAS Metals was a simple decision to make. We see significant exploration potential across the Raska Project and consolidating the region makes it easier to implement our strategy for Raska.
About the Adriatic Metals share price
The Adriatic share price has been a relatively solid performed over the past 12 months, rising by more than 40%. Adriatic shares have gradually increased since hitting a 52-week low of 78 cents in March 2020.
Based on the current share price, Adriatic Metals has a market capitalisation of roughly $394 million.
